Large Enterprises will transform India's Digital Future: Zinnov

Zinnov, a leading Management Consulting firm, has released a path-breaking report titled ‘Large Enterprises: Transforming India’s Digital Future’. This report brings to light how Indian Large Enterprises are undergoing digital transformation with a focus on enhancing operational efficiency and delivering an unparalleled customer experience. Indian economy has grown at a tremendous pace over the last two decades and Large Enterprises are the harbingers of accelerated growth expected in the coming years as well. As per Zinnov, a Large Enterprise denotes a business entity operating in India with HQ in India / outside India, and having a headcount of 1,000+ employees. The list includes private enterprises as well as PSUs and Government undertakings.

India has around 3400 Large Enterprises out of which roughly 1200-1300 are public-listed on Indian stock exchanges. These public-listed Large Enterprises generate revenues equivalent to nearly 40% of India’s Gross Domestic Product (GDP). Manufacturing, Real Estate & Construction, Retail/CPG and BFSI sectors dominate the public-listed Large Enterprise landscape. Consistent performance over the years has led to 141 of the public-listed Large Enterprises clocking revenues of over $ 1 Bn in FY17, said the Zinnov report.

Delving deeper into the performance of Billion Dollar public-listed Large Enterprises, the report analyzes the performance of various sectors over the last four years to find that Energy & Utilities, Manufacturing, BFSI, Mining & Trading, Real Estate & Construction and Telecom have been sluggish whereas Retail/CPG, IT/ITeS and Healthcare led by Transport & Hospitality have emerged stronger and nimbler.

Indian Large Enterprises are walking a thin line between tackling the challenges and capitalizing on the opportunities.

Challenges

• Operational issues – Rising input costs, Lack of skilled workforce, Customer acquisition, Managing operational issues, Legislative & Environmental barriers
• Disruption – Digital native enterprises are solving the use-cases, earlier catered to by only the traditional verticals, with the use of digital technologies
• Competition from fast growing domestic enterprises such as Patanjali, Jio etc. as well as from leading MNCs quickly building their presence in the Indian Market

Opportunities

• Government policies – Initiatives like Digital India, Smart City, Make-in-India among others, are expected to create a plethora of cross-industry opportunities
• Consumer growth – With over 60% of working age population, India is one of the largest consumer markets in the world and this demographic dividend will boost consumerism over the next couple of decades
• International expansion – Growing trade and investment relations with nations, rise as an export hub as well as inorganic growth and diversification opportunities are driving more enterprises to look beyond our nation’s borders.

Billion Dollar public-listed Large Enterprises are undergoing digital transformation, particularly on five tenets of talent, processes, infrastructure, business models and innovation.

Billion Dollar public-listed Large Enterprises are expected to spend in excess of $ 360Mn towards Digital Transformation by 2020, growing y-o-y at a staggering rate of 45%. We can also expect a direct impact, not just on the workforce within these Billion Dollar public-listed Enterprises, but also on adoption of digital technologies by the entire business ecosystem.

In this study, Zinnov has also assessed the digital capabilities of Billion Dollar public-listed Large Enterprises based on their focus on advanced digital technologies like Artificial Intelligence (AI), Robotic Process Automation (RPA) and Internet of Things (IoT), investments in digital talent, partnerships, and acquisitions. It’s interesting to note that more than 40% of the Enterprises have already made investments in AI, RPA and IoT and ~20% of the Enterprises are well underway in their digital transformation journey.

The report further assesses the capabilities of global technology players and how they are facilitating Large Enterprises in their digital transformation journey. For full access to the report, click here.